Crypto Price Analysis: The cryptocurrency market recently experienced a downturn following the release of inflation data that exceeded expectations, increasing investor concerns about the future of the global economy. According to CNBC, the core personal consumption expenditures (PCE) price index, which excludes food and energy, rose 2.8% year-on-year in March, matching February's numbers but slightly above forecasts.
This recent report is part of a series of unfavorable inflation updates that are fueling speculation that the Federal Reserve may keep interest rates stable.
Therefore, the sluggish BTC price trading over the weekend reinforces the sideways movement of most major coins, which is due to no major initiatives from buyers or sellers. However, market participants see the current consolidation as an opportunity for digital coins to stabilize ahead of the expected post-halving recovery.
Also Read: Crypto Price Prediction: Key Altcoins to Watch as Bitcoin Heads towards $60,000
1) Bitcoin (BTC)
Bitcoin (BTC)| Trading view
Bitcoin, the original cryptocurrency, is notable for its groundbreaking blockchain technology, which enables decentralized and secure financial transactions without the need for a central authority.
Bitcoin experienced significant selling pressure this week, resulting in its price falling from $67,000 to $63,352, a decline of 5%. The leading cryptocurrency has a market capitalization of $1.25 trillion while its 24-hour trading volume stands at $18 billion.
If the bearish momentum continues, BTC price could fall by another 5.2% and reach the support trendline of the triangle pattern at $60,000.
This technical setup has resulted in a consolidation trend over the past two months, reflected within two converging trend lines. If the lower support holds, Bitcoin price could trigger a fresh rally to target the upper resistance at $71,200.
2) Optimism (OP)
Optimism (OP)| Trading view
Optimism (OP) is a Layer 2 scaling solution for Ethereum that aims to improve blockchain capacity and reduce transaction costs through optimistic rollups. This technology stands out because it enables faster and cheaper transactions while leveraging the security of the Ethereum mainnet.
Over the past seven weeks, the OP price has experienced a steady correction under the influence of a descending trend line. The bearish downturn saw the altcoin price drop from $4.85 to $1.8, a loss of 63%.
However, as part of the post-halving consolidation, the altcoin price fell back to $2.64. The Optimism coin currently has a market cap of $2.7 billion and trading volume has increased to $427.2 billion since yesterday.
The recent upswing breaks the aforementioned trend line and signals the end of the previous corrective trend. The recovery after the breakout could push the coin price to $4.
3) Shiba Inu (SHIB)
Shiba Inu (SHIB)| Trading view
Shiba Inu (SHIB) is a meme coin that originated as a decentralized, community-driven cryptocurrency inspired by Dogecoin. For over a week, SHIB has been trading sideways, fluctuating within two horizontal levels at $0.000028 and $0.000023.
The daily chart with short bodies and long wicks indicates that buyers or sellers are not dominating. At press time, Shiba Inu coin has a market cap of $14.4 billion and a trading volume of $361.2 million.
If SHIB price finds suitable support at $0.000023, buyers will hit the first higher low – predicting an early sign of another recovery. The potential upside is likely to be countered by overhead supply at $0.000028 and $0.00002385.
Bring away
The cryptocurrency market continues to experience consolidation after the halving, evidenced by Bitcoin's notable price without any particular direction. The altcoin market is also following the same trend, allowing excluded buyers to find opportunities to pull back as the overall trend remains bullish.
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